ISLAMABAD: A senior official at the Privatization Commission has said the government was expecting at least $1 billion in foreign investment by the end of the year to revive Pakistan’s largest steel manufacturing complex, Pakistan Steel Mills (PSM), with investors from Russia and China displaying interest in running the facility as part of a consortium.
Once the producer of almost half the country’s steel needs, state-owned PSM, designed and funded by the Soviet Union in the 1970s, now has around Rs400 billion in losses and liabilities. The facility has been dormant since 2015 and contributes up to Rs20 billion in annual losses to the national exchequer.
Officials say the Mills have the capacity to expand to produce three million tonnes of cold and hot-rolled steel annually. But managers over the years have failed to upgrade machinery, losses have spiralled and production has tumbled 92 percent in the past decade as demand for steel tanked during the 2008 recession and customers turned to cheaper Chinese products.
But the government of Prime Minister Imran Khan says it is resolved to turn around the facility’s fortunes, calling for international companies to run the Mills in partnership with the government.
The plan includes creating a new subsidiary, Steel Corp Limited, on the premises of the Pakistan Steel Mills to offer the mammoth industrial unit to foreign investors. Instead of selling or privatizing the Mills, the government aims to revive the operation and production of the unit with the help of foreign investors to meet growing local demand for steel.
“We are planning to sell its shares to foreign investors through a competitive bidding process, which is expected to be completed by December or January,” Iftikhar Naqvi, director-general of the Privatization Commission in Islamabad, told Arab News.
“We are expecting at least one billion dollars in foreign investment for an annual production of one million tons in the first year. The investors may pour an additional $3 to $4 billion to enhance the annual production capacity of up to three million tons.”
Naqvi, who is the brain behind the government effort to revive the stalled Mills, hopes the country would be able to complete the financial closure of all foreign investments by April next year to revive and operate the steel mill and once more begin production.
The Privatization Commission has recently completed road shows in Islamabad to gauge the interest of local and foreign investors in the steel mill, he said.
“We have received a very encouraging response from numerous foreign investors especially from China and Russia,” Naqvi said.
Pakistan’s annual steel demand stands at about eight million tons whereas local production fluctuates in the range of three to four million tons. The country fills the gap by importing steel and iron from Japan and other countries.
“Once we revive our steel unit, it will not only fulfill our local demand but also help us export steel,” Naqvi said, adding that the government would retain up to 74 percent shares to continue having a decision-making role in the organization.
Pakistan Steel Mills is spread over an area of 19,000 acres while the government has carved out a piece of 1,229 acres to house machinery, equipment and plant for steel production to be handed over to investors on lease.
“This separate and clean entity of all losses and liabilities will be handed over to investors," Naqvi said, "wherein they can install new machinery and recruit technical hands of their choice."
Last year, six Russian firms including the METPROM Group, three Chinese companies including the Metallurgical Corporation of China (MCC), four Ukrainian entities including Ukrainian National Foreign Economic Corporation, one American firm and three Pakistani companies expressed interest in running the facility.
Pakistan expects $1 billion foreign investment by 2022 to revive state-run Steel Mills
https://arab.news/6q4dp
Pakistan expects $1 billion foreign investment by 2022 to revive state-run Steel Mills
- Privatization DG says investors from Russia and China interested in buying shares of Pakistan Steel Mills
- The government hopes to complete financial closure of foreign investments by April next year
IMF says its mission will visit Pakistan this month to discuss new loan
- Pakistan last month completed a short-term $3 billion program, which helped stave off sovereign default
- But the government of Prime Minister Shehbaz Sharif has stressed the need for a fresh, longer-term program
KARACHI: An International Monetary Fund mission is expected to visit Pakistan this month to discuss a new program, the lender said on Sunday ahead of Islamabad beginning its annual budget-making process for the next financial year.
Pakistan last month completed a short-term $3 billion program, which helped stave off sovereign default, but the government of Prime Minister Shehbaz Sharif has stressed the need for a fresh, longer-term program.
“A mission is expected to visit Pakistan in May to discuss the FY25 budget, policies, and reforms under a potential new program for the welfare of all Pakistanis,” the IMF said in an emailed response to Reuters.
Pakistan’s financial year runs from July to June and its budget for fiscal year 2025, the first by Sharif’s new government, has to be presented before June 30.
The IMF did not specify the dates of the visit, nor the size or duration of the program.
“Accelerating reforms now is more important than the size of the program, which will be guided by the package of reform and balance of payments needs,” the IMF statement said.
Pakistan narrowly averted default last summer, and its $350 billion economy has stabilized after the completion of the last IMF program, with inflation coming down to around 17 percent in April from a record high 38 percent last May.
It is still dealing with a high fiscal shortfall and while it has controlled its external account deficit through import control mechanisms, it has come at the expense of stagnating growth, which is expected to be around 2 percent this year compared to negative growth last year.
Earlier, in an interview with Reuters, Finance Minister Muhammad Aurangzeb said the country hoped to agree the contours of a new IMF loan in May.
Pakistan is expected to seek at least $6 billion and request additional financing from the Fund under the Resilience and Sustainability Trust.
Pakistan PM extends condolences over death of Saudi poet Prince Badr bin Abdul Mohsen
- Prince Badr, affectionately known as the ‘word engineer,’ was a legendary figure in the contemporary Saudi poetry
- His influence on art form was felt across the Gulf, while his eloquent verses left indelible mark on hearts and minds
ISLAMABAD: Prime Minister Shehbaz Sharif on Sunday extended his heartfelt condolences to Saudi Arabia’s Royal Family on the death of eminent Saudi poet, Prince Badr bin Abdul Mohsen, saying his legacy would continue to inspire generations to come.
The prince, affectionately known as the “word engineer,” was a legendary figure in contemporary Saudi poetry whose influence in the art form was felt across the country and the wider Gulf region, where his eloquent verses and poignant prose left an indelible mark on the people’s hearts and minds.
A pioneer in the popularization of Saudi poetry among Arab audiences, Prince Badr’s verses were immortalized in songs by many esteemed Arab artists, including Talal Maddah, Mohammed Abdu, Kadim Al-Sahir and Assala. His patriotic words and songs struck a deep chord with Saudis in particular.
In a post on X, Sharif said Prince Badr’s most popular song on Saudi Arabia’s National Day would always remind the world of his profound love for his country.
“His contributions to contemporary poetry in the Arabian Peninsula were truly remarkable and his legacy will continue to inspire generations to come,” the Pakistan premier said.
“May his soul rest in peace and may his words forever resonate in the hearts of poetry lovers around the world.”
Prince Badr was born on April 2, 1949, and his journey as a poet and cultural figure began at a young age. He studied in Saudi Arabia, Egypt, the UK and the US as he took his early steps on the path to becoming a significant figure in Arab literature.
As president of the Saudi Society for Culture and Arts, he played a crucial role in fostering artistic expression and influencing the development of poetry organizations in the Kingdom. In recognition of his outstanding contributions in the field, King Salman honored Prince Badr with the prestigious King Abdulaziz Medal in 2019.
Soon after, the Kingdom’s Literature, Publishing and Translation Commission announced plans to collect and publish his complete literary works to commemorate his enduring legacy and celebrate the profound impact he had on the Saudi creative movement during a five-decade career.
Top Afghan diplomat in India quits after $2 million gold smuggling reports
- Zakia Wardak was reportedly stopped last month on arrival at Mumbai airport, carrying 25 kilograms of gold
- The Afghan consul-general was not arrested because of her diplomatic immunity, but the gold was confiscated
NEW DELHI: Afghanistan’s top diplomat in India resigned days after she was reportedly caught by airport authorities smuggling nearly $2 million worth of gold into the country.
Zakia Wardak, the Afghan Consul-General in India’s financial capital Mumbai, posted a statement on social media platform X announcing her resignation.
Afghanistan’s embassy in New Delhi shut down in November, more than two years after the Taliban returned to power in Kabul following the collapse of the Western-backed government, leaving Wardak as the country’s most senior representative in India.
“It is with great regret that I announce my decision to step away from my role at the Consulate and Embassy in India, effective May 5, 2024,” Wardak said Saturday.
Indian media reports said Wardak was last month stopped by financial intelligence authorities at Mumbai airport on arrival from Dubai — along with her son — carrying 25 kilograms of gold.
She was not arrested because of her diplomatic immunity, the reports said, but the gold — worth around $1.9 million — was confiscated.
Wardak’s resignation leaves thousands of Afghan nationals, including students and businessmen, without any consular representation in India.
Most foreign nations — including India — do not officially recognize Afghanistan’s Taliban government, but acknowledge them as the de facto ruling authority.
In many Afghan missions, diplomats appointed by the former government have refused to cede control of embassy buildings and property to representatives of the Taliban authorities.
Wardak said in the statement that she had “encountered numerous personal attacks and defamation” over the past year.
Such incidents “have demonstrated the challenges faced by women in Afghan society,” she added, making no explicit reference to the gold allegations.
The Taliban authorities have full control of around a dozen Afghan embassies abroad — including in Pakistan, China, Turkiye and Iran.
Others operate on a hybrid system, with the ambassador gone but embassy staff still carrying out routine consular work such as issuing visas and other documents.
Most countries evacuated their missions from Kabul as the Taliban closed in on the Afghan capital in August 2021, although a handful of embassies — including Pakistan, China and Russia — never shut, and still have ambassadors in Kabul.
At OIC summit, Pakistan expresses concern over Israel’s ‘brutal’ military onslaught in Gaza
- Pakistan’s Deputy PM Ishaq Dar expresses full support for Palestine’s inclusion as a United Nations member
- Dar urges OIC member states at Banjul Summit to push for immediate and unconditional ceasefire in Palestine
ISLAMABAD: Pakistan’s Deputy Prime Minister and Foreign Minister Ishaq Dar on Sunday expressed his deep concern over Israel’s “brutal military onslaught” in the West Bank and Gaza, state-run media reported, calling for an immediate ceasefire in Palestine.
Dar was speaking at the Organization of Islamic Cooperation (OIC) summit being held against a backdrop of widespread anger over Israel’s military actions in Gaza. The Jewish state has killed nearly 35,000 Palestinians and caused massive destruction of hospitals, schools and residential neighborhoods in the densely populated area.
The Pakistani deputy prime minister arrived in Gambia on Wednesday to present his country’s perspective on a wide range of issues, including the war in Gaza and the rights situation in Indian-administered Kashmir.
“Deputy Prime Minister and Foreign Minister Senator Mohammad Ishaq Dar on Sunday expressed Pakistan’s deep concern over Israel’s ongoing brutal military onslaught against the Palestinian people in Gaza and the West Bank,” the state-run Associated Press of Pakistan (APP) reported.
“In the backdrop of the genocide of Palestinians and atrocities of Israeli forces, he urged the OIC Member States to work together for an immediate and unconditional ceasefire.”
Dar also expressed Pakistan’s support for Palestine’s admission as a full member of the UN, demanding the resumption of the process for a two-state solution in the Middle East.
The Pakistani deputy prime minister called for the creation of a viable, contiguous and sovereign state of Palestine based on the pre-1967 borders.
Dar also spoke on an uptick in Islamophobic sentiments and incidents in different parts of the world, particularly since the outset of Israel’s war in Gaza last year in October.
He urged the OIC to formulate a joint strategy to work with global social media platforms to harmonize their content regulation policies for blasphemous, anti-Islamic and Islamophobic content.
“Dar also strongly condemned the surge in anti-Pakistan rhetoric and Islamophobic narratives by India’s political leaders during the ongoing Lok Sabha elections which threatened the regional stability,” the APP said.
He urged the OIC to work collectively to address the existential threat of climate change, which caused catastrophic floods in Pakistan in 2022 that killed over 1,700 people and affected over 33 million in total.
Dar met The Gambia’s president and his counterparts from Turkiye and Azerbaijan to discuss enhancing bilateral trade and economic cooperation, Pakistan’s foreign ministry spokesperson said in a statement.
Pakistan to face India on Oct. 6 in women’s T20 World Cup clash
- ICC Women’s T20 World Cup to run from Oct. 3-20 in Dhaka and Sylhet
- Pakistan are placed in Group A with Australia, India, New Zealand, Qualifier 1
DHAKA: England will face South Africa in the opening match of the ICC Women’s Twenty20 World Cup to be held in Bangladesh later this year, the International Cricket Council announced on Sunday.
The event will run from October 3 to 20 in the capital Dhaka and the northeastern city of Sylhet, with warm-up matches starting on September 27.
Hosts Bangladesh and the top six teams from the previous edition in South Africa — Australia, England, New Zealand, South Africa and the West Indies — qualified automatically for the tournament, with Pakistan joining them as the next best ranked team.
Ireland, the UAE, Sri Lanka and Scotland are in contention for the remaining two places, with the semifinals of the qualifying tournament being held in the UAE.
Six-times winners and current world number one Australia will play in Group A alongside India, New Zealand, Pakistan and a Qualifier 1.
Neighbours and rivals India and Pakistan will face off on October 6.
Group B will feature South Africa, Bangladesh, England, West Indies, and Qualifier 2.
“Over the last six to seven years we have seen women’s cricket grow exponentially,” ICC chief executive officer Geoff Allardice said at the announcement of the fixture list and trophy unveiling in Dhaka.
“This is going to be a very special tournament,” he added.
It will be the ninth edition of the tournament, with Bangladesh previously hosting in 2014.
